A TALE OF TWO CLAMS: POLICY ANTICIPATION AND INDUSTRY PRODUCTIVITY

Sound environmental regulation must achieve environmental objectives while maximizing economic efficiency. This paper evaluates the impact of regulation on efficiency by measuring annual productivity across regulatory regimes in two similar fisheries with differing policy expectations. Anticipation of regulatory change produced strategic behavior in one fishery, leading to depressed productivity; in the other, regulatory change was not expected, and productivity did not suffer. These results imply that fisheries regulation should take into account both firms' policy expectations and the potentially perverse incentives that may be created by policy change.


Issue Date:
2003
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/14523
Total Pages:
28
Series Statement:
Working Paper 2003-10




 Record created 2017-04-01, last modified 2017-08-23

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